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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Profit Before Income Taxes

The Company’s profit (loss) before income taxes consists of:

		For the years ended December 31,
		2019				2020				2021
		RMB				RMB				RMB				US$
Cayman Islands			(5,359,465	)			3,309,525,351				(37,599,025	)			(5,900,107	)
Hong Kong			18,479,616				(14,414,430	)			(14,883,394	)			(2,335,529	)
China			474,699,082				448,162,790				64,790,713				10,167,077
Total profit before income taxes			487,819,233				3,743,273,711				12,308,294				1,931,441

Summary of Current and Deferred Component of Income Tax Expenses

The current and deferred component of income tax expenses which were substantially attributable to the Company’s PRC subsidiaries, VIE and subsidiaries of the VIE, are as follows:

		For the years ended December 31,
		2019				2020				2021
		RMB				RMB				RMB				US$
Current income tax expense			91,994,704				121,701,686				603,765,914				94,744,047
Deferred income tax (benefit) expense			(9,034,211	)			248,151,964				(582,913,268	)			(91,471,812	)
Total income tax expense			82,960,493				369,853,650				20,852,646				3,272,235

Summary of Principal Components of Deferred Tax Assets and Liabilities

The principal components of the deferred tax assets and liabilities are as follows:

		For the years ended December 31,
		2020				2021
		RMB				RMB				US$
Non-current deferred tax assets
Risk assurance liabilities			223,500,138				276,221,432				43,345,170
Provision for credit losses			55,584,637				194,973,439				30,595,587
Contract assets			—				7,495,619				1,176,226
Customer advances			5,687,968				5,552,404				871,293
Donation			125,000				—				—
Fair value change on derivative instruments			—				1,336,597				209,741
Net operating loss carry-forward			65,558,135				16,959,870				2,661,374
Less: valuation allowance			(7,148,961	)			(16,959,870	)			(2,661,374	)
Non-current deferred tax assets, net			343,306,917				485,579,491				76,198,017
Non-current deferred tax liabilities
Acquisition of insurance brokerage license			(10,724,126	)			(10,724,126	)			(1,682,849	)
Unrealized gain on long-term investment			(11,009,130	)			(11,009,130	)			(1,727,573	)
Contract assets			(162,308,288	)			—				—
Withholding tax			(319,079,320	)			(40,746,914	)			(6,394,080	)
Non-current deferred tax liabilities			(503,120,864	)			(62,480,170	)			(9,804,502	)

Summary of Reconciliation of Income Before the Provision of Income Taxes and Actual Provision for Income Taxes

Reconciliation between the income tax expense computed by applying the PRC tax rate to income before the provision of income taxes and the actual provision for income taxes is as follows:

		For the years ended December 31,
		2019				2020				2021
		RMB				RMB				RMB				US$
Income before provision of income tax			487,819,233				3,743,273,711				12,308,294				1,931,441
PRC statutory income tax rate			25	%			25	%			25	%			25	%
Income tax at statutory tax rate			121,954,808				935,818,428				3,077,074				482,860
Tax rate differential			(36,157,163	)			(852,831,321	)			5,070,813				795,721
Over-accrued EIT for previous years			(39,664,283	)			—				—				—
Impact of tax rate change			36,367,754				(35,511,678	)			—				—
Utilization of net operating loss carry-forward			(9,708,887	)			—				—				—
Non-deductible expenses			22,277,780				19,219,052				19,443,641				3,051,132
Research and development super-deduction			(9,961,515	)			(10,970,775	)			(10,177,551	)			(1,597,080	)
Non-taxable income			(3,587,542	)			(982,266	)			—				—
Change in valuation allowance			1,439,541				(2,412,144	)			9,894,006				1,552,585
Withholding tax			—				317,524,354				(6,455,337	)			(1,012,983	)
Income tax expenses			82,960,493				369,853,650				20,852,646				3,272,235

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Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment.

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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